I’ve been watching some news that could significantly impact your advertising strategy this summer.

According to Reuters, Chinese online marketplaces Temu and Shein are sharply cutting their U.S. digital ad spending across platforms including Facebook, Instagram, TikTok, Snap, X and YouTube.

If you sell in the US, this might just create the biggest digital advertising opportunity we’ve seen in years.

Here’s what’s happening: President Trump’s executive order is eliminating the “de minimis” exemption, which previously allowed imports under $800 to bypass tariffs. Starting May 2nd, merchandise from China and Hong Kong will face these tariffs regardless of value.

The numbers are biggie-sized. 

Sensor Tower reports Temu’s daily average U.S. ad spend across major platforms has declined 31% in just two weeks. Shein’s spending dropped 19% in the same period.

These companies have become absolute behemoths in the advertising space. And they’ve left tire marks on everyone else in it.

When Temu ramped up its Meta spending last year, many advertisers (myself included) watched in horror as CPMs climbed steadily upward.

Now, with these tariff changes forcing them to raise product prices next week and cut ad spending, that vacuum could create a significant opportunity for U.S.-based brands.

Think of it like several deep-pocketed bidders leaving the auction house.

Suddenly, everyone else has a chance to get in and buy at a reasonable price.

In I Need That, I talk about how friction and competition dramatically impact product adoption. Advertising platforms work similarly — when competition decreases, your message travels further with less resistance and lower cost.

This shift could benefit you in two key ways:

First, lower competition in the ad auction likely means lower costs per thousand impressions (CPMs). Your existing ad budget could suddenly deliver way more visibility.

Second, with fewer ultra-discount competitors flooding the feed, consumers may regain their perspective on value. When people aren’t constantly bombarded with ads for $2 leggings and $9 electronics, the perceived value of quality products tends to normalize.

Product Payoff: Native deodorant provides a perfect case study in seizing market opportunities during competitive shifts. When major deodorant brands pulled back digital spending during a formulation overhaul in 2017, Native rapidly scaled their Meta campaigns, capturing market share that would have been prohibitively expensive otherwise.

Action for today: Review your summer advertising strategy with this potential opportunity in mind. Consider:

1. Testing some new audience targeting that might have been too expensive previously
2. Preparing creative variations to quickly scale successful ads if costs drop
3. Setting up automated rules to increase spend on high-performing campaigns if CPMs fall below certain thresholds

While it’s still too early to know exactly how big this impact will be, the brands that prepare now will be best positioned to capitalize if costs do indeed drop.

Have you noticed any changes in your Meta ad performance yet? Or had success capitalizing on competitive shifts in the past? Tap that reply arrow and share your experience — I’m collecting real-world data points on this developing situation.

Or reach out to my amazing team of digital advertising specialists at Graphos Product.